A lease renewal expert witness is a chartered surveyor, usually an RICS Registered Valuer, instructed to give independent evidence on the rent and terms of a new business tenancy when a landlord and tenant cannot agree them. Under Part II of the Landlord and Tenant Act 1954 a tenant with security of tenure is entitled to a new lease, and if negotiations fail the county court fixes the rent under section 34 and the other terms under section 35. The outcome turns almost entirely on the valuation evidence, and this guide explains what that evidence must establish, how interim rent is dealt with, where PACT fits in and what a renewal expert costs.
Most renewals settle without proceedings. The process starts with a landlord's section 25 notice or a tenant's section 26 request, each giving six to twelve months' notice. If terms are not agreed before the notice date, one party must apply to court under section 29 (or the parties must agree an extension in writing) or the tenant loses the right to a new lease.
In an unopposed renewal the live issues are usually the rent, the length of the term and a handful of clauses, and the court directs expert valuation evidence on rent. In an opposed renewal the landlord relies on a section 30 ground, most often ground (f), an intention to demolish or reconstruct, or ground (g), an intention to occupy, and the evidence widens to building surveyors on the scope of works and whether they genuinely require possession. The valuation expert witness service covers the rent side and the wider expert witness service the building and redevelopment questions.
Section 34 directs the court to fix the rent at which the holding "might reasonably be expected to be let in the open market by a willing lessor", on the terms of the new tenancy and disregarding the tenant's occupation, the goodwill of its business, voluntary tenant's improvements (within the limits the section sets) and, for licensed premises, the licence. The expert's job is to turn that statutory hypothesis into a figure the court can adopt, which means:
The report itself follows the structure required of any valuation expert witness report: CPR Part 35 and Practice Direction 35 govern its form and the expert's overriding duty to the court, and the RICS practice statement on surveyors acting as expert witnesses applies alongside them. A report that reads as a negotiating position rather than an impartial opinion will be given little weight.
Because the old tenancy continues under section 24 until the renewal is resolved, either party can apply for an interim rent under sections 24A to 24D, payable from the earliest date the section 25 notice or section 26 request could have specified. Where the landlord did not oppose renewal and the tenant takes a new tenancy of the whole holding, the interim rent is generally the same as the new rent, so no separate valuation is needed. In other cases the court fixes a "reasonable rent" for a tenancy from year to year, having regard to the old rent, and the expert must produce a second figure on that basis, usually discounted for the short, uncertain tenure. Renewals that run on for two or three years can involve substantial sums under this head, so the interim rent evidence deserves the same care as the main figure.
In the county court the rent in an unopposed renewal is often directed to a single joint expert rather than one expert on each side, particularly where the premises are modest and the gap between the parties is small. The parties share the fee and each may put written questions under CPR 35.6. Where separate experts are allowed, the court will normally direct a without-prejudice meeting and a joint statement under CPR 35.12 identifying the comparables and adjustments that are agreed and those that are not, which frequently narrows the dispute to one or two points.
The parties can also take the rent and terms out of court altogether. Professional Arbitration on Court Terms (PACT) is the joint RICS and Law Society scheme under which a surveyor or solicitor is appointed to decide the disputed terms as an arbitrator or independent expert, with the court granting the new lease on that basis. The panel's valuers act in PACT references as well as in court; the guide to expert evidence in property arbitration explains how the procedure differs. Mediation on rent is also common once reports have been exchanged, because a reasoned joint statement gives both sides a realistic view of the likely outcome.
Section 35 leaves the length of the new term, up to a maximum of fifteen years, and the remaining clauses to the court, which generally starts from the current lease and requires the party seeking a change to justify it. Surveyors give evidence on what the market would accept, such as whether a break clause is standard for the premises or whether repairs should be limited by a schedule of condition, and often give alternative rent figures for the main variants.
Where the landlord opposes on ground (f), a building surveyor's evidence on the proposed works, their cost, programme and the access they need often decides the case, because the landlord must show a firm and settled intention and a realistic prospect of carrying the works out. A renewal dispute also frequently runs alongside a terminal dilapidations claim; the dilapidations expert witness page explains how that evidence is prepared.
Fees depend on the complexity of the premises and the evidence to analyse rather than on the rent in dispute. Chartered surveyors on the panel typically charge £150 to £300 an hour for expert witness work. A section 34 rent report on a single shop, office suite or industrial unit, including comparable verification, an inspection and the Part 35 declarations, usually falls between £5,000 and £15,000; a multi-let building, a report that also covers interim rent and section 35 terms, or an opposed renewal with building surveying evidence can reach £20,000 to £50,000 or more. Single joint expert appointments cost less per party because the fee is shared, and trial attendance is charged at around £1,000 to £2,000 a day. Fixed fees are quoted wherever the scope is clear. At the negotiation stage, a rent review and lease advisory surveyor acting as adviser rather than expert witness may be the more proportionate first step.
Survey Merchant provides RICS Registered Valuers and chartered building surveyors as expert witnesses in Landlord and Tenant Act 1954 renewals across England and Wales. The panel's experts prepare section 34 rent and interim rent reports, give evidence on section 35 terms and ground (f) and (g) oppositions, act as single joint experts and in PACT references, and attend court when required. Instructions are accepted from landlords, tenants and their solicitors. Visit the valuation expert witness service page, or contact Survey Merchant on 0204 579 8270 with the premises details, the stage the renewal has reached and any directions already made.
Survey Merchant provides access to a panel of accredited and chartered surveyors across 100+ UK locations at fixed fees:
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→ Expert witness surveyors — CPR Part 35 reports for property disputes
